Affymax, Inc. Announces a Special Cash Distribution and the Appointment of a New Director and Chief Executive Officer

Affymax, Inc. (OTCQB: AFFY) today announced that its Board of Directors has declared a special cash distribution to shareholders in the amount of $0.05 per share. The special cash distribution will be paid to shareholders of record at the close of business on December 2, 2014, the record date, on or about December 23, 2014. The Board has also appointed Jonathan M. Couchman as a Class I director of the Company and as its President and Chief Executive Officer, and the remaining members of the Board have resigned. The Company, under the leadership of Mr. Couchman, will continue its evaluation of strategic alternatives.

“After a review and evaluation of potential alternatives to the Company’s liquidation and dissolution, the Board of Directors reached the conclusion that it is in the best interests of the shareholders to appoint Jonathan M. Couchman as Director, President and Chief Executive Officer of the Company, and distribute $0.05 per share to the shareholders. Mr. Couchman will endeavor to identify and cause the company to acquire one or more revenue or income producing assets,” stated John Orwin, Chairman of the Board of Directors. “We believe that these arrangements will maximize value to our shareholders by providing an immediate substantial cash distribution to shareholders, while preserving and enhancing the opportunity to derive additional value in the future.”

“I am excited by the challenge to identify and pursue opportunities to maximize value for Affymax and for its stockholders and am encouraged by the excellent results the Company has secured for its shareholders by working hard to resolve a large number of highly complex matters,” said Mr. Couchman. “I appreciate the opportunity to continue to pursue strategic opportunities to further maximize value for shareholders, including the potential to make new investments and acquisitions among other alternatives.”

Jonathan M. Couchman serves as Chairman of the Board, Chief Executive Officer and Chief Financial Officer of Xstelos Holdings, Inc., and Myrexis, Inc. (OTC Pink Sheets: MYRX) and previously served as Director of Golf Trust of America, during its evaluation of strategic alternatives, which culminated in the reverse merger of privately owned Pernix Therapeutics Holdings, Inc. into Golf Trust of America, effective March 9, 2010.

Cautionary Statement About Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements relating to the possibility that the Company may be able to acquire one or more revenue or income generating assets in the future and the potential for opportunities to further maximize value for shareholders, including the potential for a private to public reverse merger, investments and acquisitions among other alternatives. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expect,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or “continue,” the negative of these terms or other terminology.

Forward-looking statements are based on the opinions and estimates of management at the time the statements are made and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. The Company’s actual results may differ materially from those expressed or implied by these forward-looking statements based on a number of factors, including the Company’s failure to acquire one or more revenue or income generating assets or to identify and execute upon any opportunities to further maximize value for shareholders, and other risks and uncertainties described in the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2014. Readers are cautioned that these forward-looking statements and other statements contained in this press release regarding matters that are not historical facts, are only estimates or predictions. Readers are cautioned not to place undue reliance upon these forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to update any forward-looking statements whether as a result of new information, future events or other factors, except as required by law.